TUCSON, Ariz. (AP) -- The bad economy has also been bad for landlords in Tucson.

The economic downturn and a state law against hiring illegal immigrants have dramatically increased the number of vacant apartments around the city.

Some apartment complexes are offering free or reduced first-month rents or discounted rental contracts to try to reverse a trend that is expected to persist through 2009.

Discounted prices mean it is a good time to be looking for rentals, said Kimberly Fitch, owner/partner at Nicolosi & Fitch Inc., which manages 23 properties and 5,000 apartment units.

Tucson-area vacancies are averaging 12 percent to 13 percent, Fitch said.

Apartment complexes in some areas of the city are 25 percent vacant, she said.

Studies show the vacancy rate remains low - 3.7 percent - in the prime part of town for rentals, near the University of Arizona.

Fitch said she has seen signs at some apartment complexes around town offering up to three months free rent to new tenants.

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Information from: Tucson Citizen, http://www.tucsoncitizen.com

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